Introduction
Investing has become more accessible to the public, and there are many platforms to choose from. Two of the most popular options are M1 Finance and Fidelity. Both platforms offer unique features that cater to different investing preferences. In this article, we will compare M1 Finance and Fidelity to help you make an informed decision on which platform to use for your investment portfolio.
Overview of M1 Finance
M1 Finance is a commission-free investing platform that allows investors to create custom portfolios. The platform offers fractional shares, which allows investors to buy a portion of a stock instead of a whole share. M1 Finance also offers automatic rebalancing, which keeps your portfolio in line with your target allocation. The platform offers individual and joint accounts, as well as retirement accounts such as IRA and Roth IRA.
Overview of Fidelity
Fidelity is a full-service investing platform that offers a wide range of investment options. The platform offers commission-free trading for stocks, ETFs, and options. Fidelity also offers mutual funds, bonds, and annuities. The platform offers individual and joint accounts, as well as retirement accounts such as IRA and Roth IRA.
Investment Options
M1 Finance offers stocks, ETFs, and a selection of expert portfolios called “Pies.” These Pies are pre-made portfolios that cater to different investment objectives such as income, growth, and retirement. Fidelity offers a wider range of investment options such as stocks, ETFs, mutual funds, bonds, and annuities. Fidelity also offers managed portfolios called “Fidelity Go,” which are pre-made portfolios that cater to different investment objectives.
Fees
M1 Finance does not charge any trading fees or account fees. However, there is a $100 minimum investment to open an account. Fidelity offers commission-free trading for stocks, ETFs, and options. Fidelity charges $4.95 per trade for mutual funds, and there is a $49.95 annual account fee for accounts with less than $10,000.
User Experience
M1 Finance offers a user-friendly platform that is easy to navigate. The platform offers a mobile app for on-the-go investing. Fidelity also offers a user-friendly platform that is easy to navigate. The platform offers a mobile app for on-the-go investing, as well as a desktop platform for more advanced traders.
Customer Service
M1 Finance offers customer support through email and a help center on their website. Fidelity offers customer support through phone, email, and a help center on their website. Fidelity also has a network of physical branches for in-person support.
Security
M1 Finance and Fidelity both offer two-factor authentication for account security. M1 Finance offers SIPC insurance up to $500,000, while Fidelity offers SIPC insurance up to $500,000 and excess of SIPC insurance up to $1.9 million.
Pros and Cons of M1 Finance
Pros:
- Commission-free trading
- Automatic rebalancing
- Customizable portfolios
- Expert portfolios (Pies)
Cons:
- Limited investment options
- No physical branches
- No mutual funds or bonds
Pros and Cons of Fidelity
Pros:
- Wide range of investment options
- Managed portfolios (Fidelity Go)
- Physical branches for in-person support
- SIPC and excess of SIPC insurance
Cons:
- $49.95 annual account fee for accounts with less than $10,000
- $4.95 per trade for mutual funds
- No customizable portfolios
Conclusion
In conclusion, both M1 Finance and Fidelity offer unique features that cater to different investing preferences. M1 Finance is a great option for those who want to create custom portfolios and enjoy commission-free trading. Fidelity is a great option for those who want a wide range of investment options and physical branches for in-person support. Ultimately, it comes down to your investment objectives and personal preferences.
